The executive committee (EC) of the Employees’ Provident Fund Organisation (EPFO) held its 112th meeting on February 25, 2025. It was chaired by Sumita Dawra, Secretary, Ministry of Labour and Employment, and discussed issues pertaining to IT-system upgradation, higher pension, and ease of service, among others.
While discussing various issues related to processes and systems, the EC formally adopted the Unified Pension Scheme (UPS) in the meeting for EPFO employees. The employees can now opt to shift from the National Pension Scheme (NPS) to the UPS. Both schemes are managed by the Pension Fund Regulatory and Development Authority (PFRDA). However, unlike the existing NPS, UPS guarantees a minimum pension subject to conditions. UPS is scheduled to become effective from April 1, 2025.
Also Read: UPS Or NPS: Which One Should You Choose?
According to the Labour Ministry notification, “Effective from April 1, 2025, the UPS ensures financial security post-retirement, offering a minimum guaranteed pension along with additional benefits such as family pension provisions and dearness relief adjustments. EPFO officers and staff will now have the option to transition from NPS to UPS”.
Other Points Of Discussion At The Meeting:
The Centralised Pension Payment System (CPPS) has been made available at all regional offices of EPFO in the last month (January). Around 69.4 lakh pensioners have received their pension through CPPS during the month. The facility is available through the National Automated Clearing House (NACH). With this, pensioners can receive their pension from any bank or any branch across the country
The EC also emphasised the need to shift to the Aadhaar-Based Payment System (ABPS) within a specified time frame for a faster and more secure system
The outdated IT system has been a leading cause of complaints from EPF subscribers. To address this issue, a Centralised IT-enabled system (CITES 2.01) is being developed, which is scheduled for completion by March 31, 2025. The updated system will replace the existing field office verification system and is expected to reduce the grievances of subscribers
The EPFO 3.0 initiative of the EPFO is currently underway. The initiative aims to enhance convenience for subscribers by introducing features such as ATM cards, a new mobile application, and more. It is scheduled for completion by June 2025. However, the EPFO is required to prepare a Vision Document for EPFO 3.0 by the end of next month (March 31, 2025)
The organisation is focused on making life easier for EPFO subscribers by streamlining the processing, and auto-settlement of claims, and rationalising validations for partial withdrawals, such as Form 31 for advance withdrawal for specified needs
The higher pension issue was also taken up. In its judgement dated November 4, 2022, the Supreme Court permitted employees to opt for higher pensions under the EPS-95 scheme. The deadline for employees to opt for higher pension was July 11, 2023. For employers, the deadline was January 31, 2025, to verify the claims. EPFO informed that 70 per cent of the total of 17.49 lakh applications it received by the deadline in July 2023, claiming higher pensions, have been processed so far. EPFO plans to complete the processing of the remaining applications by March end (March 31, 2025).